Many may not be aware that there is a rapidly approaching deadline whereby HM Revenue and Customs require all UK and some non-UK Trusts to be registered prior to the 1st September 2022.
Established since 2017, the Trust Registration Service (TRS) stated that all UK Express Trusts liable to pay UK tax were required to register. The (TRS) was set up in 2017 as part of Anti-Money Laundering Regulations and to satisfy the requirements of The Money Laundering and Terrorist Financing and Transfer of Funds Regulations.
New rules were introduced on the 6th October 2020 to extend the scope of the trust register to all UK and some non-UK trusts, with some specific exclusions, regardless of whether the trust has a liability to tax.
Non-taxable trusts in existence on or after the 6th October 2020 are required to register by the 1st September 2022. This also includes Trusts that were open on or after the 6th October 2020 but have since closed.
Non-taxable trusts created after the 1st September 2022 are required to register within 90 days of creation.
In addition, changes to the trust details and/or circumstances must be updated within 90 days of the change.
It is the Trustees responsibility to declare the full and correct Trust information to HMRC. Whilst HMRC will require one “Lead Trustee” as the point of contact, it will remain all the Trustees responsibility to ensure that the correct information is provided. If that information is incorrect, all Trustees could be liable for HMRC imposed penalties.
If you are a Trustee, Settlor or Beneficiary of a Trust we suggest that you contact us to discuss the new regulations and requirements. Barwells can assist with general advice on the Trust Registration Service or register the Trust on your behalf.
If you wish to discuss this matter any further, please contact Sophie Maloney or Rebecca Murdock on 01323 814010 / 01323 899331 or via email firstname.lastname@example.org.